Konrad, Kai A.; Olsen, Trond E.; Schöb, Ronnie
Resource extraction and the threat of possible expropriation: The role of Swiss bank accounts.
In: Journal of Environmental Economics and Management, Vol. 26, No. 2: pp. 149-162
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This paper examines the consequences of resource owners being threatened with possible nationalization / expropriation. If shows that Long′s [J. Econom. Theory10, 42-53, 1975] overextraction result critically depends on availability of a relatively safer investment alternative. If all investment alternatives are similiarly uncertain, then resource extraction is efficient, but the overall savings-consumption decision is distorted toward consumption.